Landmarks’ uphill battle

BURSA Malaysia has given Landmarks Bhd until July 28 to submit a regularisation plan to the relevant authorities.

The hospitality, wellness and resort developer’s audited financial statements for the year ended Dec 31, 2025 (FY25), reveal significant challenges to its financial health.

External auditors KPMG PLT recently issued an unqualified opinion but highlighted material uncertainty regarding the group’s ability to continue as a going concern.

The company reported a group loss of RM19.9mil and a company loss of RM15.1mil.

Liquidity pressures were also evident, with the group holding net current assets of just RM300,000, while the company faced net current liabilities of RM113mil.

Based on its exchange filings, Landmarks’ proposed recovery strategy involves asset disposal, particularly the sale of equity interest in Andaman Resort Sdn Bhd (ARSB).

The share sale agreement remains pending due to a tax appeal related to fire insurance compensation.

Once resolved, the disposal proceeds and escrowed funds are expected to support operations.

Management also targets a zero-gearing position, anticipating a net cash balance post-disposal.

Additionally, unencumbered inventories in its Treasure Bay Bintan (TBB) resort development in Bintan, Indonesia, may be monetised or used as collateral to secure financing.

Landmarks, which is 21.7%-owned by Genting Bhd via Phoenix Spectrum Sdn Bhd, has posted losses for the past 15 years, with the exception of FY20 due to one-off gains from the sale of its 20% stake in MSL Properties Sdn Bhd to MCL Land Ltd for RM87.4mil.

Incidentally, Sunway Group acquired MCL in September 2025 for RM2.42bil, and subsequently rebranded it as Sunway MCL.

It appears Landmarks concentration on the 338-ha waterfront TBB resort project has not worked out as planned.

Despite rising inbound tourist arrivals to Bintan, competition from new hotels is eating into its market share.

So, even if it addresses its current financial challenges, Landmarks’ core business still needs to up its game, failing which the group’s financial stress could become a recurring issue.